Technical analysis

Technical overview remains very much volatile for the precious metal as it seemingly goes parabolic, and traders both large (CoT) and small (retail) remain majority buy.

Equity index takes a hit in the futures market down less than 1% denting short-term technicals, and in sentiment CoT speculators remain net short.

Risk-off moves in the financial market see futures go for a dip, but it’ll require a bit more to shake off longer-term positive technicals and majority buy sentiment among traders.

Movement relatively contained considering the fundamental update with the technical bias still negative, while in sentiment both CoT speculators and clients are extreme buy.

Technical overview remains volatile on the precious metals front with gold no exception, and both clients and CoT speculators are majority buy.

The S&P 500 fell by more than 1% on Wednesday, 17 December, breaking through technical support at 6,765, which also coincides with the 50-day simple moving average.

The S&P 500 fell by approximately 25 basis points on 16 December following a weaker-than-expected US jobs report.

The week of 15 December will be a significant test for global markets following a tough end to US trading on 12 December, when technology shares declined.

Rotation out of AI and into value the name of last week’s game helping keep the Dow’s technicals positive, while in sentiment retail traders briefly flirt with majority short bias.

The S&P 500 finished on 10 December higher by approximately 70 basis points.